CK Asset Holdings of Hong Kong Negotiations to Acquire Earls Court Interest

The real estate company founded by Hong Kong magnate Li Ka-shing is in talks to acquire a stake in Earls Court, a 3.4-square-meter development site in western London that once housed a renowned exhibition center and concert hall.

The stake is owned by the UK-listed UK-listed real estate company Capital & Counties, which owns the Covent Garden market in central London, as well as land in Earls Court, one of the world's largest development sites. from the city.

Capital & Counties plans to split in two. In a statement released on Monday, he said he was in talks with CK Asset Holdings, founded by Mr. Li, about the sale of substantially all of his interests in Earls Court Partnership, a company in which he is held as part of of a joint venture with Transport for London.

The company's interest in the Earls Court Partnership amounted to £ 700 million as at 30 June. His shares jumped 5% at the news of Monday's talks.

Capital & Counties has stated that it has "received a number of proposals regarding the interests of Capco in Earls Court which it reviews". One of these approaches, he said, came from CK Asset Holdings.

The company added: "The board of directors will evaluate the terms of any proposal in relation to the merits of a split and other options."

The discussions exclude the participation of Capital & Counties in Lillie Square, part of the Earls Court site where development is much later. Lillie Square is part of a joint venture with the Kwok family, also based in Hong Kong.

This would not be the first incursion of CK Asset Holdings into London real estate. In June, the company bought British Broadgate, the home of UBS's London headquarters, for GBP 1 billion. Mr. Li retired this year and pbaded the reins to his son, Victor Li.

CK Asset Holdings was not immediately available for comment.

The Earls Court Exhibition Center was built in 1887 and refurbished. For over a century, the site has hosted a wide variety of events and exhibitions, as well as concerts by David Bowie, Rolling Stones and Pink Floyd. However, the Art Deco building of the 1930s closed four years ago and was demolished.

The plans for the site include 7,500 new homes, as well as offices, stores and green spaces. In June, Capital & Counties highlighted the possibility of using third-party funds to develop the site, which it described as "one of the most important mixed-use development opportunities in London".